Which of the Following Is Acquired (In Addition to a Cash

question 10

Multiple Choice

Which of the following is acquired (in addition to a cash payoff) when the holder of a put futures exercises?

• A) A long position in a futures contract
• B) A short position in a futures contract
• C) A long position in the underlying asset
• D) A short position in the underlying asset

---

Definitions:

Reserve Requirements

Regulations set by central banks determining the minimum amount of reserves that must be held by a commercial bank.

Checkable Deposit Liabilities

These are bank account deposits that are immediately available to make payments and transfers, typically seen in checking accounts.

Excess Reserves

Funds that banks hold over and above the required minimum reserves set by the central bank, available for lending or investment.

United States Bonds

United States Bonds are debt securities issued by the U.S. Department of the Treasury to finance government spending as an alternative to taxation.